“THE VARIABLES THAT DETERMINE THE GLOBAL MARKET OF COLORED GEMS”

The Gemstone and Its Discovery

“A gem defined by rarity.”
An exceptional combination of conditions is required for a “gem” to form: chemical elements + temperature + pressure + time + space for growth, all in perfect balance.

Gem Defined by Rarity
Beauty: Color is the most important factor, but it is highly subjective and difficult to classify.
Internal Characteristics
Cut: An increasingly important variable, long underestimated in colored gemstones.
Durability:
Toughness: Resistance to breaking.
Hardness: Quality of polish, luster, and light reflection or refraction.
Value
A combination of rarity, beauty, and durability balanced with supply and demand dynamics.

Extraction Monopolies or Control of Rough Material
Examples include diamonds, tanzanite (led by TanzaniteOne and the local government), Cruzeiro tourmaline, Zambian emeralds, and Mozambican rubies with Gemfields. Full control is challenging and rarely achieved.

Extraction Process
Prospecting: Subsurface investigations to confirm the presence of gem deposits.
Different for metals and diamonds.
No certainty about quality, volume, or profitability.
Often accidental, unpredictable, and fortuitous discoveries resulting from other mining activities.
Characteristics of Gem Deposits
Varying and unpredictable lifespans.
Small-scale deposits.
Primitive extraction methods.
Logistical challenges: access, infrastructure.
Climatic difficulties.
Political challenges (e.g., Madagascar).
Identifying the exact mine location is difficult, often kept a “secret” or with misleading information.
Leading Regions
Southeast Asia: Thailand, Cambodia, Laos, Vietnam, Indonesia.
East Africa (world’s leading producer): Kenya, Mozambique, Malawi, Zambia, Nigeria, Tanzania.
Central Asia: Afghanistan, Pakistan, Tajikistan, China.
Leading Countries
There are deposits worldwide, but only about 50 nations have significant ones, of which 20 are major producers and only 6 are global leaders: Brazil, Colombia, Madagascar, Myanmar, Sri Lanka, Tanzania.

Other Sources by Gemstone:

Beryls: Brazil, Mozambique, Madagascar.
Tourmalines: Nigeria, Madagascar, Brazil, Mozambique, Afghanistan.
Paraiba Tourmaline: Brazil, Nigeria, Mozambique.
Adularia: India, Tanzania.
Red Garnets: Tanzania, Mozambique.
Spessartine: Tanzania, Nigeria.
Purple Chalcedony: Namibia, Indonesia.
Tsavorite: Kenya (Tsavo Park), Nigeria.
White Topaz: Brazil, Nigeria, Afghanistan.
Peridot: Afghanistan, China, Myanmar, Arizona.
Chrysoprase: Tanzania, Australia.
Turquoise: Chile, Mexico, Arizona, China, Iran.
Amber: Baltic States, Mexico, Dominican Republic, Indonesia.
Nephrite: Canada, Russia.
White Opal with Play of Colors: Australia, Ethiopia.
Black Opal: Australia.
Pink Opal: Peru.
Rhodochrosite: Argentina.
Jadeite: Myanmar.
Imperial Topaz: Brazil (Ouro Preto).
Tanzanite: Tanzania.
Blue Zircon: Cambodia.
Fossil Coral: Indonesia.
Fossil Palm: Indonesia.
Main Trading Centers
Bangkok, Teofilo Otoni, Jaipur, Hong Kong, Geneva, Shenzhen, Colombo, Bogotá, Peshawar.

Key Trade Fairs
Basel, Hong Kong, Las Vegas, Vicenza, Monaco, Tucson.

Market Influencers
Brand Differentiation:

Demand for new colors and shades: Although gemstone colors remain consistent, manufacturers explore dyed materials (chalcedony, jade, quartzite) or assembled stones like doublets and triplets.
Use of new materials: Natural minerals remain unchanged; synthetic materials and enamels are gaining traction (e.g., Pomellato).
Innovative cuts and shapes: Stones become integral parts of jewelry rather than standalone protagonists.
Big Players
LVMH (Bernard Arnault): Bulgari, Dior, Chaumet, Fred, De Beers.
Richemont: Cartier, Piaget, Van Cleef, Giampiero Bodino.
Kering: Gucci, Boucheron, Pomellato, Dodo.
Top Brands: Chopard, Tiffany, Buccellati (now part of Chinese giant Gangtai), David Yurman, De Grisogono, Chanel.
Other Brands: Anna Hu (China), Carrera y Carrera, Cervera (Spain), Teo Fennell, David Webster, Harry Winston (since 2013 part of Swatch) (UK), Ole Lynggaard (Denmark).
Valenza: Pasquale Bruni, Damiani, Giorgio Visconti, Crivelli, Recarlo, Chantecler.
Trends and Customs
From Marketing:

“A diamond is forever” remains influential.
ICA campaigns in the USA (e.g., rubies in 2007).
Garnet trends in the 1990s (e.g., Pomellato).
Yellow tourmalines (“canary”) in Japan.
From Cultural Beliefs:

Champagne diamonds in Australia.
Yellow and brown diamonds in India.
Emeralds in the Emirates.
Type A jadeite in China.
Rare cut stones in Germany.
Alexandrite in Japan.
Opals in southern Italy.
Production Challenges
Raw material shortages: Even for common materials like quartz (e.g., Pomellato).
Sudden price fluctuations: Chalcedony (Namibia), peridot, rubellite, London topaz.
Incorrect cost estimates: Examples with chrysoprase, pyramids, campanelle designs.
Difficulty in gem processing: Jet, floral cabochons, engraved plaques.
Market Today
Fluctuating and unstable prices due to extraction, trends, and demand.
A market divided between fashion jewelry and luxury investment pieces.
Increasing prices for rare, certified gems.
Vertical Market Trends:

Gemfields acquiring Fabergé.
Chinese retail groups establishing direct mining agreements in Brazil.
Brands and manufacturers opening mono-brand stores.
The rise of e-commerce.
Growing importance of gemstone cuts for colored stones.
Retail Evolution:
Small artisan-producers offering bespoke collections and tailored services are increasingly in demand.